Credit Card Processing in Canada

[N3k0]

Hi guys,

I am new to e-commerce and OSc, I am unsure what I am getting into with the Visa processing. I have tried searching, and I get lots of US processors, Gateways, proccessing fees and what not.

 

My business model is that of an online computer parts retailer. I will buy parts from wholesaler, then resell at modest profit @ $10-$12 CDN per part.

 

I want my Canadian store to accept Visa, I want to process the orders manually (to save costs). I could really use some sound advice from other Canadian e-tailers:

 

1. Can I process orders offline, after capturing the orders in OSC?

 

2. To do this, I need a merchant account - Should I get US or CDN merchant account?

 

3. How much, Canadian, will it all cost - eg for the merchant account, setup fees and any other fees?

 

4. Do I need a transaction gateway? [and what is it?]

 

5. Will I incur the per transaction fees if I am doing my own proccessing?

 

6. Anything I have missed?

 

Sorry for being such a noob at this, but I am sure I have been looking at wrong prices or solutions, and I am quite confused with it all. As far as I can work out, if I set up an account with some of these people, I would be paying all of my profits to them. In fact I would be losing money!

 

Am I missing something in all of this? If it's so costly, then how can there be other computer suppliers online doing business?

 

Again I need a bottom dollar monthly amount I can go to my business partner with and tell him some numbers he is going to approve of, can anyone in a similar situation give me advice?

 

I appreciate any helpfull replies, as I continue my search.

 

Thank you.

[N3k0]

Bump

[CJAndT]

Myself, I'm using (or will be once the store is live) a combination of Paypal and "PaySystems" for credit card processing.

 

For me, a full merchant account is not worth the monthly cost at this point, which is why I chose PaySystems. It is a $50 setup fee then no monthly fees, only transaction fees - your choice of either 5.5% + $0.35 or 3.95% + $1.00.

 

The downside is that it won't allow for offline processing, but until I have a steady cashflow coming in from my store(s), I just can't justify the cost of a full merchant account.

 

But that's just my view on it ;)

[N3k0]

Thanks for the reply. I may look into that.